Meta to Pay Record $1.4 Billion for Unauthorized Use of Biometric Data

Overview

On July 30, 2024, Texas Attorney General Ken Paxton reached a record $1.4 billion deal to settle claims against Meta (formerly known as Facebook) related to the tech giant’s unauthorized capture and use of Texans’ personal biometric data.

As the single largest settlement ever obtained from an action brought by an individual state, the landmark case marks a significant victory for Texas and sets a groundbreaking precedent for future privacy-related lawsuits. The settlement is also one of the largest penalties ever levied at Meta by lawmakers, second only to the $5 billion sum it paid to the FTC in 2019.

Case Background

Alleging violations of the Texas Capture or Use of Biometric Identifier Act and the Deceptive Trade Practices Act, the state first filed a lawsuit against Meta in February of 2022. The complaint alleges that Meta unlawfully captured the biometric data of millions of Texans for a “commercial purpose” without their informed consent. Specifically, Texas accuses Meta of surreptitiously obtaining, retaining and even disclosing for profit the records of individuals’ facial geometrics, which Texas law regards as a biometric identifier.

Texas maintains that for over a decade, Meta unlawfully used facial recognition software on virtually every face contained in photographs uploaded to Facebook and captured records of the facial geometry of the people depicted therein. Meta claims the software was intended to enhance user experience by making it easier to “tag” other users in photographs, but it failed to explain the feature’s functionality or obtain consent before automatically enabling it for all Texans.

Though Meta did not admit to any wrongdoing as part of the settlement agreement with Texas, the tech company has stated that it no longer uses the facial recognition technology at issue. Meta must pay the first installment of $500 million within 30 days, with subsequent payments to be made annually over the next four years.

Texas Attorney General Paxton stated, “This historic settlement demonstrates our commitment to standing up to the world’s biggest technology companies and holding them accountable for breaking the law and violating Texans’ privacy rights. Any abuse of Texans’ sensitive data will be met with the full force of the law.”

Closing

If you have any questions about this topic and how it may affect your business, please contact the HBS Data Privacy & Cybersecurity team.

The full text of the final judgement entered against Meta can be read on the Attorney General of Texas website.

Disclaimer

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